Bullish bias to remain intact above 10DMA
Cable bounced from one-week low (1.3609) posted in early European session on Tuesday, lifted by fresh optimism among investors
The action in past two days closed repeatedly in red but managed to stay above 10DMA (1.3651) with today’s dip through 10DMA and probe through 20DMA pivot (1.3620), being so far short-lived.
Another close above 10DMA would keep near-term bias with bulls, but risk of deeper pullback exists, as momentum on daily chart turned sideways and stochastic is heading south after forming a bearish divergence.
Weak UK jobless data, although slightly below expectations, so far had limited impact, with markets turning focus on today’s vote on Janet Yellen as Treasury Secretary and tomorrow’s Fed policy meeting, expecting fresh signals.
Res: 1.3678; 1.3700; 1.3723; 1.3745
Sup: 1.3651; 1.3620; 1.3570; 1.3520